Rise in French industrial output is unlikely to support rental values

On the face of it, the fourth consecutive monthly rise in French industrial output in August provides some grounds for hope that an improvement in industrial occupier demand might be imminent. However, much of the improvement stems from the temporary effects of the car scrappage stimulus package. As such, it may overstate the outlook for a recovery in occupier demand and we therefore think that falls in industrial rental values in France are likely to continue into 2010.